Cash strapped infrastructure major IVRCL Ltd has Rs 4,000 crore worth of assets for sale and expected out of debt in the next two years once the sale is successful, said a senior official.
IVRCL Ltd Chairman and Managing Director Sudhir Reddy said E assets for sale includeRoad projects both operational and under construction Desalination Plant in Chennai. We will be selling the BOT projects and get out of debt in two years. The debt component of the company's core is not much. In terms of EBITDA is no profit in the business. We have been serving more than component of interest (on loans), Reddy, said on the sidelines of the recently held annual general meeting here.
Before Corporate Debt Restructuring Empowered Group approved the company's proposal for a package to recast debt of Rs 7,300 crore. IVRCL faces liquidity crisis due to the economic slowdown, higher interest charges, and slower pace of project implementation. As part of the debt recast, IVRCL is also eligible for a new loan of 175 crore rupees which can be used for capital requirements meetings besides getting Rs 1,400 crore bank guarantees, among other facilities. IVRCL is currently involved in discussions with Tata Group company TRIL Roads Pvt Ltd to download three road projects.
However, no binding terms sheet has been signed by both parties, he said. Reddy said IVRCL has seven road projects, including three in operation and expects Rs 1.85 million rupees daily toll collection once all the projects are operational. The company has a 75 per cent in Chennai Water Desalination Ltd (CWDL), which invested around Rs 600 crore to set up around 100 million liters per day seawater desalination plant in Chennai in a building, own, operate and transfer (BOOT) basis for 25 years. The other 25 percent interest is carried out by the Spanish partner Befesa Water, which brought in technology to purify seawater into drinking water.
IVRCL invested about 240 crore as equity balance raise money through debt. IVRCL achieved a gross turnover of 4,305 crore for the 12 months ended March 31, 2014 as compared to Rs 3.759 million rupees in the previous year (9-month period). Suffered Rs 717 million rupees loss in the last fiscal year.
